{"id":70350,"date":"2025-05-19T16:04:01","date_gmt":"2025-05-19T06:04:01","guid":{"rendered":"https:\/\/www.icmarkets-vni.com\/blog\/?p=70350"},"modified":"2025-08-05T19:26:01","modified_gmt":"2025-08-05T09:26:01","slug":"monday-19th-may-2025-asia-pacific-markets-dip-amid-u-s-credit-downgrade","status":"publish","type":"post","link":"https:\/\/www.icmarkets-vnk.com\/blog\/monday-19th-may-2025-asia-pacific-markets-dip-amid-u-s-credit-downgrade\/","title":{"rendered":"Monday 19th May 2025: Asia-Pacific Markets Dip Amid U.S. Credit Downgrade\u00a0"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><br \/><br \/>Global Markets:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&nbsp;Asian Stock Markets : Nikkei down 0.08%, Shanghai Composite down 0.37%, Hang Seng down 0.46% ASX up 0.42%<\/li>\n\n\n\n<li>Commodities : Gold at $3220.35 (-0.39%), Silver at $32.8 (-0.69%), Brent Oil at $64.58 (-0.29%), WTI Oil at $61.6 (0.29%)<\/li>\n\n\n\n<li>Rates : US 10-year yield at 4.424, UK 10-year yield at 4.6560, Germany 10-year yield at 2.6250<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">News &amp; Data:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>(USD) Prelim UoM Consumer Sentiment 50.8&nbsp; to 53.1&nbsp; expected<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Markets Update:<\/h3>\n\n\n\n<p>Asia-Pacific markets declined on Monday as investors reacted to fresh economic data from China and Moody\u2019s downgrade of the U.S. credit rating. Hong Kong\u2019s Hang Seng index dropped 0.73%, and China\u2019s CSI 300 fell 0.48%. Japan\u2019s Nikkei 225 slipped 0.54%, while the Topix lost 0.36%. South Korea\u2019s Kospi declined 0.47%, and the Kosdaq was down 0.77%. In Australia, the S&amp;P\/ASX 200 edged 0.15% lower as the Reserve Bank of Australia began its two-day policy meeting.<\/p>\n\n\n\n<p>The market pressure followed Moody\u2019s Ratings decision on Friday to downgrade the U.S. sovereign credit rating from Aaa to Aa1. The agency cited rising fiscal challenges, including the growing federal budget deficit and the increasing cost of debt refinancing in a high interest rate environment. This move places Moody\u2019s in line with S&amp;P and Fitch, which downgraded the U.S. credit rating in 2011 and 2023, respectively.<\/p>\n\n\n\n<p>Despite the downgrade, analysts such as Vasu Menon, managing director at OCBC, noted that a significant market sell-off is unlikely. In his view, the concerns highlighted by Moody\u2019s\u2014particularly about the expanding U.S. deficit and debt\u2014have been long-standing and widely discussed. He emphasized that these issues, while serious, have already been priced into market expectations to some extent.<\/p>\n\n\n\n<p>In the U.S., stock futures fell after the S&amp;P 500 recorded a four-day rally driven by optimism over tariff reductions between the U.S. and China and positive inflation data. Dow futures dropped 292 points (0.7%), while S&amp;P 500 and Nasdaq 100 futures were down 0.7% and 0.8%, respectively. On Friday, the S&amp;P 500 rose 0.70% to 5,958.38, the Nasdaq gained 0.52% to close at 19,211.10, and the Dow added 331.99 points (0.78%) to finish at 42,654.74, entering positive territory for 2025.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Upcoming Events:&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>02:00 PM GMT &#8211; USD CB Leading Index m\/m<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets: News &amp; Data: Markets Update: Asia-Pacific markets declined on [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":71231,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215,339],"tags":[],"class_list":["post-70350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis","category-recent-posts"],"_links":{"self":[{"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/posts\/70350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/comments?post=70350"}],"version-history":[{"count":2,"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/posts\/70350\/revisions"}],"predecessor-version":[{"id":70355,"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/posts\/70350\/revisions\/70355"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/media\/71231"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/media?parent=70350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/categories?post=70350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets-vnk.com\/blog\/wp-json\/wp\/v2\/tags?post=70350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}